Business Analysis of Yum China Holdings

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Yum China Holdings

YUM CHINA HOLDINGS

Business Overview

Yum China Holdings, Inc. is a restaurant company. The Company's segments include KFC, Pizza Hut Casual Dining, and All Other Segments, including Pizza Hut Home Service, East Dawning, Little Sheep and Taco Bell. As of December 31, 2016, the Company had over 7,500 restaurants in China. Its restaurant base consists of various restaurant concepts. The Company's restaurants in each of its concept offer consumers the ability to dine in and/or carry out food. In addition, KFC, Pizza Hut Casual Dining, Pizza Hut Home Service and East Dawning offer delivery service. KFC is the quick-service restaurant (QSR) brand. Pizza Hut Casual Dining is the casual dining restaurant (CDR) brand. As of December 31, 2016, the Company had over 360 Pizza Hut Home Service units in over 50 cities in China. The Little Sheep concept specializes in Hot Pot cooking. East Dawning is a Chinese food QSR brand. Taco Bell is a QSR brand specializing in Mexican-style food.

Yum China Holdings

Yum China Holdings


R&P Rank: 394
Sector: Restaurants
Industry:Fast Food Restaurants
H.Q Location:Texas
Website: www.yum.com
Company Address:
7100 CORPORATE DRIVE, PLANO TX 75024
Ph:888-298-6986

Business Analysis of Yum China Holdings

The Restaurants Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Yum China Holdings compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Yum China Holdings to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Yum China Holdings with an interactive chart.

  1. Revenue Growth: Yum China Holdings reported a revenue growth of -0.4% year-on-year during 2016. Fast Food Restaurants Industry grew at -0.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Yum China Holdings spent 85.8% of its total revenues on COGS. Fast Food Restaurants industry average (COGS share of revenue) in the same period was 63.7%
  3. R&D share of Revenues: Yum China Holdings R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Yum China Holdings spent 5.7% of its total revenues on Sales, Marketing, and General Administration (SG&A). Fast Food Restaurants industry average SG&A spending in the same period was 11.7%
  5. Inventory share of Revenues: Yum China Holdings Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: Yum China Holdings Accounts Payable share of Revenues details are not available because either company does not share the data or we do not have it
  7. Accounts Receivable share of Revenues: Yum China Holdings Accounts Receivable share of Revenues details are not available because either company does not share the data or we do not have it
  8. PP&E share of Revenues: Yum China Holdings PP&E share of Revenues details are not available because either company does not share the data or we do not have it
  9. Intangibles share of Revenues: Yum China Holdings Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
  10. Net Margins: Yum China Holdings Net Margins in the year 2016 were 4.7%. Fast Food Restaurants industry average Net Margins in the same period were 14.2%

Sector and Industry Association of Yum China Holdings

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Yum China Holdings is associated with Restaurants Sector and Fast Food Restaurants Industry.

Restaurants sector is comprised of the following industries: Fast Food Restaurants; Fast-Casual Restaurants; Casual Dining Restaurants; Fine Dining Restaurants. The definitions for each of the industries is as follows:

  • Fast Food Restaurants industry includes fast food restaurants. Fast food restaurants are typically chains like McDonalds and Burger King. Fast food restaurants are also known in the restaurant industry as QSRs or quick-service restaurants.
  • Fast-Casual Restaurants industry include restaurants that do not offer full table service, but offer a higher quality of food with fewer frozen or processed ingredients than other fast food restaurants. It is an intermediate concept between fast food and casual dining. The category is exemplified by chains such as Noodles & Company, El Pollo Loco Holdings, Inc., and Chipotle Mexican Grill, Inc.
  • Casual Dining Restaurants industry includes restaurants that offer table side service, non-disposable dishes at a moderate price. Menu in these restaurants ranges from Italian to seafood to Mexican food.
  • Fine Dining Restaurants industry includes restaurants that are full service restaurants with specific dedicated meal courses. Décor of these restaurants features higher-quality materials.

Industry Ranking of Yum China Holdings

With $6.9 billion revenues, Yum China Holdings ranked number 2 of all the companies in the US Fast Food Restaurants industry. There were a total of 21 public companies in the US Fast Food Restaurants industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Fast Food Restaurants industry by revenues during 2016 were:

  1. McDonald's ($24.6 billion)
  2. Yum China Holdings ($6.9 billion)
  3. Yum Brands ($6.4 billion)
  4. Restaurant Brands International ($4.1 billion)
  5. Panera Bread ($2.8 billion)
  6. Domino's Pizza ($2.5 billion)
  7. Papa John's International ($1.7 billion)
  8. Jack In The Box ($1.6 billion)
  9. Wendy's ($1.4 billion)
  10. Red Robin Gourmet Burgers ($1.3 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Yum China Holdingsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of yum-china-holdings

McDonald’s (MCD) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

McDonald's Corp with $25 billion revenues in the year 2016 was the number 1 Fast Food Restaurants company. Read this report to know the top competitors of McDonald's and identify growth and cost optimization opportunities of McDonald's

Yum Brands (YUM) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Yum Brands Inc with $6 billion revenues in the year 2016 was the number 3 Fast Food Restaurants company. Read this report to know the top competitors of Yum Brands and identify growth and cost optimization opportunities of Yum Brands

Restaurant Brands International (QSR) Business Analysis – Analyze Historical Performance, Strategic...

Restaurant Brands International Inc. with $4 billion revenues in the year 2016 was the number 4 Fast Food Restaurants company. Read this report to know the top competitors of Restaurant Brands International and identify growth and cost optimization opportunities of Restaurant Brands International

Panera Bread (PNRA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Panera Bread Co with $3 billion revenues in the year 2016 was the number 5 Fast Food Restaurants company. Read this report to know the top competitors of Panera Bread and identify growth and cost optimization opportunities of Panera Bread

Domino’s Pizza (DPZ) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Domino's Pizza Inc with $2 billion revenues in the year 2016 was the number 6 Fast Food Restaurants company. Read this report to know the top competitors of Domino's Pizza and identify growth and cost optimization opportunities of Domino's Pizza

Papa John’s International (PZZA) Business Analysis – Analyze Historical Performance, Strategic...

Papa John's International Inc with $2 billion revenues in the year 2016 was the number 7 Fast Food Restaurants company. Read this report to know the top competitors of Papa John's International and identify growth and cost optimization opportunities of Papa John's International

Revenues Analysis

Yum China Holdings (YUMC) Revenues And Revenue Growth From 2013 To...

This report provides the last four years revenues and revenue growth of Yum China Holdings, Inc. (YUMC) from 2013 to 2016. Yum China Holdings generated a total of $6.9 billion revenues during 2016. Yum China Holdings reported a revenue growth of -0.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Yum China Holdings (YUMC) Revenues And Revenue Growth From 2013 To...

This report provides the last four years revenues and revenue growth of Yum China Holdings, Inc. (YUMC) from 2013 to 2016. Yum China Holdings generated a total of $6.9 billion revenues during 2016. Yum China Holdings reported a revenue growth of -0.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Yum China Holdings (YUMC) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of Yum China Holdings, Inc. (YUMC) revenue growth with Fast Food Restaurants industry growth during the last two years from 2015 to 2016. Yum China Holdings reported a revenue growth of -0.4% year-over-year during 2016. The Fast Food Restaurants industry growth was -0.6% year-over-year during 2016. Yum China Holdings growth was faster than the industry during 2016.

Profit Analysis